The Strawman Index combines the most widely recommended companies into a single scorecard. As such, it seeks to uncover the 'wisdom of the crowd' and is a good representation of how the community at large is performing, relative to the market average (as represented by the Vanguard ASX300 ETF, ASX:VAS)
Strawman Index rules:
- All companies are ranked according to the number of recommendations they have received from members.
- A new position is added to the index when a company reaches the top 15 of all ranked recommendations. At the same time, a position is opened in the Vanguard ASX300 ETF (ASX:VAS), which acts as a benchmark for subsequent returns. In both cases, dividends are included in return calculations.
- If a company drops out of the top 20, the position is closed. However, the return it generated will indefinitely impact the total performance of the Strawman Index.
You can view all closed positions by clicking the check-box at the top right of the Scorecard.
You can take a quick tour of the Strawman Index page here, or watch this short overview: